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Odds of auto loan with 1.25 years credit history?

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Regular Contributor

Odds of auto loan with 1.25 years credit history?

Dear finance gods, 

 

My AoOA is 1y3m  and AAoA is 9M.

Total CL on my 4 cards is $9000 and utliz is less than 3%.

 

I make around 38K with 1400 in rent. 

I'm looking to buy a Honda Civic Sedan LX (21000ish with destination) exluding tax/title etc. But I will put about 4000 down. So financing will be 17000 + Tax/title/dealership fee etc. 

 

I've x questions:

A) What are my odds of getting an auto loan, like what kinda APR

B) Can the auto loan include the my tax/title/dealship fee? I want to stick to 4000-4500 as my initial out of pocket expense so I wish to pay down payment only if possible.

 

I have a year old account with a credit union in texas and a 3 month old account with Alliant CU. As well as bofa as my primary bank (with direct deposit).

 

I'm going with the 2019 model as it has free Honda Sensing (auto collision breaking) etc so its safer. And I don't really know much about old cars so I don't want to get a used car that might end up with major issues the seller didn't disclose. In general I want to stay away from auto repair shops.

 

Thank you

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Message 1 of 14
13 REPLIES 13
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Frequent Contributor

Re: Odds of auto loan with 1.25 years credit history?

Try Capital One's pre-approval, they recently announced they will start approving customer's with as little as one tradeline that is a year old. With your thin/young file, they may be able to approve you with a favorable APR considering your down payment.

 

I would also try CU's like DCU/NFCU/Penfed, etc.

 

As far as financing taxes, you should be able to include those into the loan but I always suggest not financing taxes if you don't have to. No sense in paying interest on taxes/registration if you don't have to.

AMEX BCE ($39,500) CITI AAdvantage ($20,500) Region's Platinum Card ($14,400) Discover IT ($23,000) Macy's ($7,000) Chase FU ($10,000) Barclay's Aviator ($22,000) TU:778 EX: 781 EQ:791
Message 2 of 14
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Regular Contributor

Re: Odds of auto loan with 1.25 years credit history?

Thank you. I'll check it out again. I tried cap one online pre qualify auto loan page last month and they say NO due to lack of loan payment history or something like that.

 

Also, do I have to tell the bank/CU a fixed amount like the car is 23,460 USD etc or it can be a ballpark number like I can ask for 24,500 and then depending on the deal with the dealership, regardless of the price (perhaps they give me an xyz discount, I use the same 24,500  adjust my down payment accordingly?

 

UPDATE: I just tried cap one auto navigator pre qual page and again got the same message "we’re unable to provide you with a pre-qualified offer. you'll get a letter in 7 days with the reasons for decision."

 

Thank you.

BofA Cash Rew: 16k+
Citi Premier: 7k+
Citi DC: 7k+
Chase Amazon: 4k+
Cap1 QS1: 2k+
Barclays Uber: 8k+






Next App in: Late Oct 2019

Torch bearer of the Bucketeers' Society. Shamefully carrying a bucketed Cap One QS1 with AF & zero chance of a PC.

Message 3 of 14
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Frequent Contributor

Re: Odds of auto loan with 1.25 years credit history?

You may try Cap One again, as their updated underwriting guidelines have just been announced this week.

 

As far as requesting an amount, it depends... some lender's will give you a pre-approval up to a certain amount with stipulations (ie: certain year, LTV, miles, etc) and some lender's will want a buyer's order filled out by the seller with the negotiated price before approving that amount.

AMEX BCE ($39,500) CITI AAdvantage ($20,500) Region's Platinum Card ($14,400) Discover IT ($23,000) Macy's ($7,000) Chase FU ($10,000) Barclay's Aviator ($22,000) TU:778 EX: 781 EQ:791
Message 4 of 14
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Regular Contributor

Re: Odds of auto loan with 1.25 years credit history?

Cap one doesn't like something about my file. denied pre-approval for second time in 2 months. Perhaps they've some UW like 2 year minimum history or something?

BofA Cash Rew: 16k+
Citi Premier: 7k+
Citi DC: 7k+
Chase Amazon: 4k+
Cap1 QS1: 2k+
Barclays Uber: 8k+






Next App in: Late Oct 2019

Torch bearer of the Bucketeers' Society. Shamefully carrying a bucketed Cap One QS1 with AF & zero chance of a PC.

Message 5 of 14
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Frequent Contributor

Re: Odds of auto loan with 1.25 years credit history?

Hi NaaryalHead,

 

In my opinion, Cap1 is the most lenient auto financier out there, and unfortunately your AAoA is causing the denials. You will probably be lucky if you stop by BOA, your primary banker and apply in-person.

 

Amex BCE | Discover | Chase Freedom | Citibank DC | SYNCB | Barclay Rewards | BoA Cash Rewards | CapOne QS | Chase CSR | Chase FU | Amex Ascend | 2019 Goals = Done |
Message 6 of 14
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Regular Contributor

Re: Odds of auto loan with 1.25 years credit history?

Thank you. Do you have I stand any chance with Alliant CU I'm member of or another CU perhaps?
BofA Cash Rew: 16k+
Citi Premier: 7k+
Citi DC: 7k+
Chase Amazon: 4k+
Cap1 QS1: 2k+
Barclays Uber: 8k+






Next App in: Late Oct 2019

Torch bearer of the Bucketeers' Society. Shamefully carrying a bucketed Cap One QS1 with AF & zero chance of a PC.

Message 7 of 14
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Frequent Contributor

Re: Odds of auto loan with 1.25 years credit history?

CUs may be a little more strict, unless you have been a member for a long time. I cannot speak for Alliant, but other members of the forum may be able to.

Amex BCE | Discover | Chase Freedom | Citibank DC | SYNCB | Barclay Rewards | BoA Cash Rewards | CapOne QS | Chase CSR | Chase FU | Amex Ascend | 2019 Goals = Done |
Message 8 of 14
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Valued Contributor

Re: Odds of auto loan with 1.25 years credit history?

 wrote:

Dear finance gods, 

 

My AoOA is 1y3m  and AAoA is 9M.

Total CL on my 4 cards is $9000 and utliz is less than 3%.

 

I make around 38K with 1400 in rent. 

I'm looking to buy a Honda Civic Sedan LX (21000ish with destination) exluding tax/title etc. But I will put about 4000 down. So financing will be 17000 + Tax/title/dealership fee etc. 

 

I've x questions:

A) What are my odds of getting an auto loan, like what kinda APR

B) Can the auto loan include the my tax/title/dealship fee? I want to stick to 4000-4500 as my initial out of pocket expense so I wish to pay down payment only if possible.

 

I have a year old account with a credit union in texas and a 3 month old account with Alliant CU. As well as bofa as my primary bank (with direct deposit).

 

I'm going with the 2019 model as it has free Honda Sensing (auto collision breaking) etc so its safer. And I don't really know much about old cars so I don't want to get a used car that might end up with major issues the seller didn't disclose. In general I want to stay away from auto repair shops.

 

Thank you


The thing that concerns me most about your profile is not the length of your credit history, but your DTI. Do you pay the full $1400 rent on your own? By my calculations, with your income and rent, that already puts you at 44%. I have a short credit history and managed to get a few approvals and just got my car this Saturday! To compare, I'll give you a brief summary of my experience (see my signature for additional info):

 

@I applied through Cap1 Auto end of August and was denied for limited credit history (I only had 1 credit card at the time). So of course this sent me into a panic because my old car was dying and I did not want to spend more money repairing. Got a second card, which helped my scores and number of accounts. I reapplied in mid-October and got approved! Rates weren't great (8.34 - 10.5% for 60 months) depending on variables. The next day, I applied with DCU (which has a new buyer program) and I was also approved with them for $25k @7.49% for 65 months, plust a Visa with a $5,000 limit. Finally, I went to the Mazda dealership and let them pull my credit to see if they could do better and I got approved @5.99% for 60 months. They told me most of the banks denied me, but it was Toyota Financial Services that took me (the owner owned several different dealerships and had access to Toyota banking). Mind you, I don't yet have a TU or EQ score (only Experian).

 

I would suggest to you to reach out to a few credit unions and see if they'll approve. If/when you get an approval, go for a Honda dealership that's owned by a large group with multiple dealerships. They'll probably have access to a wider variety of lenders, like mine.

 

Let me know if you have any questions.

 

 





Message 9 of 14
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Valued Contributor

Re: Odds of auto loan with 1.25 years credit history?

If you don't want any hard pulls, also try Auto Credit Express. They deal with auto loans for bad/limited credit and can possibly find you a lender. It found me a local Honda Dealer willing to work with me, so it's worth a try. Beware that you will get tons of emails and/or calls once you submit your info.





Message 10 of 14
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